Defendants Chad and Kari Koren, and Dustin Luhning made their first Sherburne County court appearance via Zoom on Wednesday, January 14, 2026. 

The defendants were given a release without bail, and an Omnibus hearing is scheduled for March 11, 2026. The defendants will be required to appear in person.   All three defendants are charged with felony counts for theft and embezzlement of public funds. 

A complaint was filed with the Sherburne County Sheriff Department on April 18, 2024, alleging that city employees had been stealing funds from the city of Clear Lake. A forensic accountant was hired to investigate financial activity during the period from November 1, 2022, through December 31, 2023, by reviewing transactions related to city credit cards, vendors, disbursements, payroll, and bank statement activity.   

City Clerk Kari Koren has been accused of receiving payment for hours not worked and fraudulent purchases totaling $125,217.37. Her husband, Chad, was accused of making personal charges totaling $4,987.17 on city credit cards.  Dustin Luhning was accused of misappropriating $71,077.45 for hours not worked and fraudulent purchases.